Question

“Rich people don’t pay their fair share of taxes.”

Do you agree or disagree with the statement above? Fully explain your response.

Answer 1

Rich people don't pay their share of taxes because:

1. Since the income tax charged is progressive in nature this defines it as the more income one earns the more tax will be charged upon it. Therefore, the rich people are charged more on their accountable income and to avoid this they find out ways to miss the tax payment

2. Unlike the middle classes their incomes come from various sources which are not so accountable like shares, bonds, investments, real estates etc. The income from these are not known to be charged upon for taxes and hence nonpayment

3. They have better sources to invest their high incomes earned like businesses in partnership which circulates their money into better earnings.

Therefore I completely agree with the statement.